Testing a Financial Incentive to Promote Re‐employment among Displaced Workers: The Canadian Earnings Supplement Project (ESP)

This article presents findings from a randomized experiment conducted in four Canadian provinces to measure the effects of a generous financial incentive that was designed to promote rapid re‐employment among workers who were displaced from their jobs by changing economic conditions. The incentive tested was an earnings supplement which, for as long as 2 years and as much as $250 weekly, would replace 75 percent of the earnings loss incurred by displaced workers who took a new lower‐paying full‐time job within six months of receiving a supplement offer. Findings from the experiment indicate that although persons offered the supplement understood its terms and conditions, only 2 out of 10 actually received supplement payments. Furthermore, the supplement offer had little effect on job‐search behavior, employment prospects, or receipt of unemployment insurance. Nevertheless, persons who received supplement payments benefited from them substantially. On average, they received payments for 64 weeks, totaling $8,705. © 2001 by the Association for Public Policy Analysis and Management.     

The unloved relationship? Dynamic capabilities and political‐market strategy: a research agenda

• In this developmental article, the authors outline a five‐stage system to classify levels of relationship engagement (LRE) between firms and government actors when developing their political‐market strategies (PMS) as part of a wider stakeholder management programme. In an attempt to develop the research agenda in this increasingly important area, the authors propose a set of hypotheses to drive forward the research agenda. Overall, we argue that firms can develop PMS into a dynamic capability but further research is needed to determine whether or not the capability developed is first or second order (i.e. contributing to other sources of competitive advantage).

Copyright © 2009 John Wiley & Sons, Ltd.     

The role of compensation in siting hazardous facilities

Empirical evidence indicates that compensation can prove effective in gaining public acceptance for siting facilities on the benign end of the spectrum (e.g., landfills, prisons), but is subject to serious limitations when it comes to facilities that the public regards as particularly risky or of questionable legitimacy such as nuclear waste repositories. These facilities require creative mitigation measures such as independent inspections of the facility and local shutdown power. Even then they may be viewed as too risky to be acceptable with or without compensation. This article proposes a two-stage siting process which recognizes the importance of regulations and safety standards (Stage 1) while employing a voluntary process with compensation to address concerns with equity and efficiency (Stage 2).     

Reducing women's poverty by shifting social security benefits from retired couples to widows

This article examines proposals to transfer Social Security benefits from married couples to surviving widows in terms of effects on poverty rates, trust fund expenditures, and Supplemental Security Income (SSI) expenditures. Because widows are much more likely to be living in poverty than older married women, it makes sense to consider Social Security benefits in a lifetime framework and transfer some benefits from the time both the husband and wife are alive to the time when there is only one survivor, usually the wife. Because of expected life span and age differences of marital partners, a $1 reduction of the couple's benefit can finance a $1.45 increase in the widow's benefit. The 1990 Survey of Income and Program Participation (SIPP) matched to the Social Security Administration's benefit records are the basis for the estimates.     

Introduction to the issue in honor of Keith T. Poole

William Baumol’s model predicts a steady increase in relative public sector prices (or costs) because of the combination of slow productivity growth and wage growth similar to sectors wherein productivity is growing more quickly. In this paper, we extend the Baumol model with political variables and analyze price growth in defense and public administration using Norwegian data. We find strong support for the mechanism of the Baumol model since manufacturing productivity is the most important determinant of relative public-sector prices. Greater political fragmentation has also contributed to the price growth, but its quantitative effect is smaller than that of manufacturing productivity. An analysis of a labor-intensive private service (restaurants and cafes) supports the broader relevance of the Baumol mechanism and the validity of the estimated effect of political fragmentation on the two sectors considered herein.     

Comparing Central City Finances Using Fiscally Standardized Cities

Abstract

Because fiscal institutions and arrangements differ widely across US cities, it has until now been very difficult to conduct comparative analysis of spending, revenues, and debt in US cities. This paper describes a new city fiscal dataset, called fiscally standardized cities (FiSCs), that directly addresses the varying roles of municipal governments, counties, school districts, and special districts in the financing of central cities. By taking systematic account of fiscal data for all the major units of government in large cities over a long time period (1977–2012), the FiSC data permit investigation of a wide range of important comparative policy issues for cities. The article describes the methodology used to construct FiSCs, and gives a number of examples to illustrate the potential uses of the FiSC data. For example, it shows how spending comparisons between cities can be fundamentally misleading unless account is taken of the varying roles of overlapping governmental units. It also demonstrates how the FiSC data can be used to benchmark fiscal data for one city against comparable cities.     

Government‐operated public broadcast stations and candidates' access to political debates

Under the Communications Act's equal opportunity requirement and FCC interpretations of that provision, licensees can choose which political candidates to include in a broadcast debate. However, a 1994 decision by a federal appellate court has clouded the ability of public broadcast stations licensed to government entities to exclude particular candidates. According to the court, such stations, as a form of state action, generate a limited First Amendment right on the part of candidates to demand inclusion in a broadcast debate. This article examines the unique constitutional questions raised by the court's decision. An assessment of the competing rights and interests of candidates, stations licensed to government entities and the public indicates that such stations should provide access to political debates.     

Elected Mayors: Leading Locally?

The directly elected executive mayor was introduced to England a decade ago. Drawing inspiration from European and American experience, the elected mayor appealed to both New Labour and Conservative commentators in offering a solution to perceived problems of local leadership. There was a shared view that governance of local areas was failing and that elected mayors were the answer. The first local referendums were held in 2001. Most have continued to reject the idea of the elected mayor. During 2012, the coalition government initiated 10 further mayoral referendums in England’s largest cities but only one, Bristol, opted for an elected mayor. Overall, there is no evidence of widespread public support, yet the prospect of more mayors – with enhanced powers – remains firmly on the policy agenda.

Drawing from a decade of research, this paper considers reasons for the persistence of the mayoral experiment, the importance of local factors in the few areas where mayors hold office and the link to current policy debates. Using the authors’ analytical leadership grid, this paper links the governmental, governance and allegiance roles of mayors to the problematic nature of local leadership. It then draws tentative conclusions about the strange case of the elected mayor in England.